To Meet Production Targets, Government Offers 116 New Oil and Gas Blocks

Jakarta — The Ministry of Energy and Mineral Resources (ESDM) is opening 116 new oil and gas blocks to global investors through work area offerings to support the achievement of national production targets. Director General of Oil and Gas Laode Sulaeman stated that this step is part of the government’s strategy to increase national oil and gas production. “The government is pursuing a strategic approach by opening 116 new oil and gas blocks to global investors through oil and gas work area offerings, as well as opening technology and operational collaborations in existing work areas through Ministry of ESDM Regulation Number 14 of 2025,” Laode said in his statement on Friday. In the 2026 state budget, Indonesia’s oil production target is set at 610,000 barrels per day. To support this target, the government is also relying on major discoveries at the Geliga Well, Ganal Block, which is estimated to have gas potential of 5 TCF and 300 million barrels of condensate. In addition, the government is strengthening energy resilience amid global geopolitical dynamics, including the impact of the closure of the Strait of Hormuz, which is an important route for global energy supplies. “Mitigation steps taken include diversifying energy imports, optimising domestic supplies and biofuels, improving refinery performance, strengthening bilateral cooperation, and more efficient fuel and LPG consumption policies,” he explained. To attract investment, the government is also carrying out regulatory reforms by providing contract flexibility through the gross split scheme and cost recovery, risk-based fiscal adjustments, and accelerating permitting through Government Regulation Number 28 of 2025. Laode emphasised that Indonesia offers significant investment opportunities in the upstream oil and gas sector, in line with ongoing reforms. “Reforms are underway. Opportunities are available. The government invites investors to be part of the development of Indonesia’s upstream oil and gas sector,” he said.